The payment – the equivalent of £3.67m - followed an explosive meeting between FAI chief executive John Delaney, 47, and Fifa president Sepp Blatter, 79, following the controversy which robbed Ireland of a place at the 2010 World Cup.

Henry, 37, handled the ball in the build-up to 37-year-old defender William Gallas’ winning goal for France against the Republic of Ireland in the second-leg of their qualifier for the South Africa finals.

The football community erupted in outrage that France escaped punishment.

The team flopped in the tournament finishing bottom of their group after losing 2-1 to hosts South Africa in a game so dismal French fans began cheering for the opposition.

Afterwards French sports minister Roselyne Bachelot told the team they had "tarnished the image of France".

Delaney said: ''We felt we had a legal case against Fifa because of how the World Cup play-off hadn’t worked out for us with the Henry handball.

''Also the way Blatter behaved, if you remember on stage having a snigger and having a laugh at us.

DEAL: Sepp Blatter and FAI chief executive John Delaney [GETTY]

“We felt we had a legal case against Fifa because of how the World Cup play-off hadn’t worked out for us with the Henry handball”

John Delaney

''That day when I went in and I told him how I felt about him there were some expletives used. We came to an agreement.

''That was a Thursday and on Monday the agreement was all signed and all done.

''I’m bound by confidentiality from naming the figure."

Delaney insisted it was a "very good" and "very legitimate" agreement for the Football Association of Ireland.

''It was a payment to the association to not proceed with a legal case," he added.

''In there they signed a confidentiality agreement where I can’t talk about the amount involved."

The revelation comes amid allegations of widespread corruption and bribery at Fifa that earlier this week led to the resignation of Blatter after 17 years as president.